02.02.202316:01 Forex Analysis & Reviews: EUR/USD outlook for February 2, 2023

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EUR/USD continues to develop an upward trend, trading near the 1.0985 mark and steadily rising towards the 1.1130 key resistance level (200 EMA on the weekly chart), the breakout of which will finally bring the pair into the long-term bull market zone.

At the beginning of today's Asian trading session, the EUR/USD pair continued to rise, reaching a new local and 10-month high of 1.1032.

As of writing, the pair has fallen to 1.0985, but its bullish trend remains in place. Market participants and buyers of the euro remain optimistic on expectations of another ECB interest rate hike and amid recent verbal interventions by its representatives.

EUR/USD remains in the medium-term bull market zone, above the key support levels 1.0510 (200 EMA on the daily chart) and 1.0590 (50 EMA on the weekly chart).

Yesterday, the price broke the important long term resistance 1.1000 (144 EMA on the weekly chart), and today it keeps on trying to break above the 1.1130 key resistance.

The breakout of today's high at 1.1032 will be a signal to increase long positions on EUR/USD, and the pair, as we noted above, will head towards the 1.1130 key resistance level, which separates the long-term bullish trend from the bearish one.

In an alternative scenario, the first signal for the resumption of short positions will be a price return to the zone below the 1.0929 local support level (last month's highs) and the breakdown of the important short-term support level 1.0884 (200 EMA on the 1-hour chart).

The nearest downside targets are support levels 1.0770, 1.0744 (200 EMA on the 4-hour chart and the lower limit of the upward channel on the daily chart). Further decline and a breakdown of the 1.0470 support level (144 EMA on the daily chart) will increase the risks of EUR/USD returning to the global downward trend.

In the meantime, long positions remain preferable even above the support levels 1.0884 and 1.0929.

Support levels: 1.0929, 1.0900, 1.0884, 1.0800, 1.0770, 1.0744, 1.0665, 1.0590, 1.0510, 1.0470

Resistance levels: 1.1000, 1.1032, 1.1130, 1.1610

Trading scenarios

Sell Stop 1.0960. Stop-Loss 1.1040. Take-Profit 1.0929, 1.0900, 1.0884, 1.0800, 1.0770, 1.0744, 1.0665, 1.0590, 1.0510, 1.0470, 1.0440, 1.0230

Buy Stop 1.1040. Stop-Loss 1.0960. Take-Profit 1.1100, 1.1130, 1.1600

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